STRATEGIC DECISION MAKING IN SUPPLY CHAINS UNDER RISK OF DISRUPTIONS

Abstract

This thesis provides methods for strategic decision making in supply chain under risk of disruptions. It first provides a general framework for strategic planning in supply chain. It then develops methods for supply chain partner selections with risk considerations, which complement existing methodologies by considering the combination of trade-offs and supply chain level performance requirements to allow for better supply chain structures. A decomposition scenario management approach is proposed to effectively reduce disruption scenarios to be considered in supplier selections. Based on a tri-level network interdiction model, an approach for protection planning against worst case disruptions is developed, which allows for modeling disruptions on financial and information flows. The tri-level model is transformed into an equivalent mixed-integer programing model using duality theory and standard linearization techniques. Numerical analysis and case studies have shown that the proposed approaches can provide valuable information to support strategic decision makings in supply chain.